The EPFO UPI withdrawal April facility is expected to be launched soon, allowing Employees’ Provident Fund subscribers to withdraw a portion of their EPF balance directly into their bank accounts using UPI, according to a government source. April
The Labour Ministry is working on a new digital system under which a certain part of the EPF balance will be frozen as a minimum corpus, while the remaining eligible amount can be accessed instantly through UPI. This move is aimed at improving ease of access and reducing claim processing time for EPFO members.
How EPFO UPI Withdrawal Will Work
Under the proposed EPFO UPI withdrawal April system, subscribers will be able to:
- View their eligible EPF withdrawal balance online
- Transfer the allowed amount directly to their bank account
- Complete the transaction using their UPI PIN for secure payments
Once credited, the funds can be used for online payments or withdrawn via ATMs using debit cards.
Software Testing in the Final Stage
Officials said the Employees’ Provident Fund Organisation (EPFO) is currently resolving technical and software-related issues to ensure the smooth rollout of the EPFO UPI withdrawal April feature. Once operational, the system is expected to benefit nearly 8 crore EPFO subscribers across India.
Currently, EPFO members must submit withdrawal claims, which can take time despite the auto-settlement mechanism.
Auto-Settlement Limit Raised
EPFO already offers an auto-settlement mode where eligible withdrawal claims are processed electronically within three days. Recently, the auto-settlement limit was increased from ₹1 lakh to ₹5 lakh, enabling faster access to funds for:
- Medical emergencies
- Education expenses
- Marriage
- Housing needs
The upcoming EPFO UPI withdrawal April facility is expected to further reduce delays by eliminating the need to file claims in many cases.
Why Direct EPF Withdrawal Is Limited
Officials clarified that EPFO cannot function like a bank or allow unrestricted direct withdrawals because it does not hold a banking licence. However, the government aims to upgrade EPFO services to match banking-level convenience through digital systems like UPI.
EPF Withdrawal Rules Simplified
In October 2025, EPFO’s Central Board of Trustees approved major reforms to simplify partial withdrawal rules. These include merging 13 complex provisions into a single rule grouped under:
- Essential needs (illness, education, marriage)
- Housing needs
- Special circumstances
Under the new framework linked with EPFO UPI withdrawal in April, members can withdraw up to 100% of the eligible EPF balance, including both employee and employer contributions.
To protect long-term savings, 25% of contributions will be maintained as a minimum balance, ensuring continued interest earnings at the current EPFO rate of 8.25% per annum.
Faster Access, Less Paperwork
With rule simplification, zero documentation, and digital payments integration, EPFO aims to move towards 100% auto-settlement of partial withdrawal claims. This will significantly reduce the burden of processing over 5 crore claims annually.
The EPFO UPI withdrawal April initiative marks a major step towards faster, paperless, and user-friendly access to provident fund savings.
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